Internal Revenue Service to help employers rehire retirees

Tax-related concerns addressed

WASHINGTON (KYMA, KECY) - On October 25, the Internal Revenue Service (IRS) stated that employers will retain their tax status and pension plans if they choose to rehire retirees or decide to distribute retirement benefits to employees 59 years of age.

This statement was announced to address Coronavirus-related labor concerns employers may have.

Retirees are encouraged to return to the workforce and fill open positions made from the COVID-19 pandemic, with many positions coming from government facilities.

The IRS wants to remind employers that rehiring these retirees will allow businesses to benefit by filling needed positions and still keep any plan qualification rules.

An FAQs has been released to alleviate any concerns and can be found on IRS.gov.

Webinars will also be taking place to discuss ways to approach any labor shortages.